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EU to continue China electric vehicle talks even after final vote, say sources
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EU to continue China electric vehicle talks even after final vote, say sources
Sep 30, 2024 2:32 AM

BRUSSELS, Sept 30 (Reuters) - The European Commission

has told EU countries it will continue negotiations with China

even after they vote on its proposal to impose final import

tariffs on Chinese electric vehicles, sources familiar with the

plans said.

The Commission, which is conducting an anti-subsidy

investigation into EVs made in China, has sent its proposal for

final tariffs on such EVs to the EU's 27 members advocating

levels that it calculated in September, the three sources said.

It has set the vote for this Friday, they added.

At the same time, it included an additional text called a

recital, stating that talks so far with China had not resolved

the dispute over alleged Chinese subsidies, but that

negotiations on a possible compromise could continue even if EU

countries agree to the tariff rates.

The European Commission declined to comment.

China's commerce ministry said last Thursday that teams were

negotiating a flexible price-commitment scheme to avert tariffs.

The Commission has said it could re-examine a price undertaking-

involving a minimum import price and typically a volume cap -

having previously rejected those offered by Chinese companies.

The proposed tariffs vary from 7.8% for Tesla EVs

built in China to 35.3% for those of SAIC and other

companies deemed not to have cooperated with the Commission's

investigation. They are on top of the EU's standard 10% car

import duty.

EU members are due to vote on Friday on whether to back

final or "definitive" tariffs for the next five years. They

would be imposed unless a qualified majority of 15 EU countries

representing 65% of the EU's population voted against.

A decision, which may require a second round of voting, has

to be taken by Oct. 30, the deadline set in the EU anti-subsidy

investigation.

If definitive tariffs are imposed, it would mean that

provisional duties dating back to July would also have to be

paid. Until the end of the EU investigation, companies can cover

these with a bank guarantee.

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